CATHAY PACIFIC v.

MARIN
G.R. No. 148931 / SEP 12 2006 / CALLEJO, SR., J../LABOR-Kinds of employee;
probationary; duration; exception/JMQAquino

NATURE
Petition for review on certiorari of the CA decision and
resolution
PETITIONER
Cathay Pacific Airways, Limited
RESPONDENTS Philip Luis F. Marin and the Hon. Court of Appeals

SUMMARY. Philip Marin filed a case for illegal dismissal against Cathay.
Appealing from the CA decision, Cathay contends that Marin was not
extended regular employment on account of his unsatisfactory
performance during the term of his probationary employment. SC,
affirming the decision of the LA and NLRC, ruled in favor of Cathay.
DOCTRINE. A probationary employee enjoys only a temporary
employment status, not a permanent statusin general terms, he is
terminable anytime as long as such termination is made before the
expiration of the six month probationary period.
The employment of a probationary employee may only be terminated
either (1) for a just cause; or (2) when the employee fails to qualify as a
regular employee in accordance with the reasonable standards made
known to him by the employer at the start of his employment.
The power of the employer to terminate an employee on probation is thus
subject to the following conditions: (1) it must be exercised in accordance
with the specific requirements of the contract; (2) the dissatisfaction on the
part of the employer must be real and in good faith, not prejudicial so as to
violate the contract or the law; and (3) there must be no unlawful
discrimination in the dismissal.
The burden of proving just or valid cause for dismissing an employee rests
on the employer.

FACTS.

Cathay Pacifics Country Manager Peter Foster confirmed Marin's

appointment as Reservations Officer effective April 6, 1992 for a
probationary period of six months.
o Cathay reserved the right to terminate his services if they
prove to be unsatisfactory. It was also said that they had
explained and he had understood the company regulations and
that he would be recommended as a regular employment when
he finishes the probationary period.

On October 2, 1992, Marin received two letters from foster: one

accepting his voluntary resignation, and the other terminating his
probationary employment.

On October 5 1992, Foster rejected Marins request to be extended

regular employment and told him that Cathay had given him all the

chances and opportunities but that he failed to live up to the

companys standards and expectations.

Marin thereafter filed a complaint for illegal dismissal, 13 th month pay,

and damages before the NLRC.

Marin claimed that:

1. He was dismissed from employment without cause, and that the
same was arbitrary and capricious. He was still entitled to security
of tenure even if he was a probationary employee.
2. He never received any letters or documents informing him of
Cathays employment standards. When he assumed office, he was
never briefed regarding his duties and functions as reservation
officer and started working without knowing Cathays rules and
regulations. He was briefed only on April 13, 1992 on the rules
regarding phone calls, break time, and others. He also came to
know of the rules and regulations of the company on his own
initiative.
3. The infractions he allegedly incurred were mere fabrications by
Gozun and Montallana. As shown by his performance ratings during
the months from May to July 1992, his work performance was good
While he received copies of some documents which were to be used
to evaluate his performance, he was not briefed on what the
documents were about. He likewise never received any
memorandum calling his attention to any such infraction. He was
not furnished a copy of the October 14, 1991 Memorandum of M.A.
Canizares, as well as the staff assessment made by Gozun.
4. On October 2, 1992, Leviste gave him two white bond papers and
asked him to make a letter of resignation. When he refused, he was
given another letter terminating his probationary employment
allegedly due to unsatisfactory performance.

Cathay Pacific contended that:

1. During the first three (3) months, Marins performance was below
than what was expected of him as reservation officer, as can be
gleaned from the staff assessments conducted by Gozun, who had
direct supervision over Marin, and that of Reservation Supervisor
Montallana.
a. as reservation officer, Marin was tasked to book
passengers, answer queries related to their itinerary in
the telesales area, and respond to telexes from one port
to another. He was prohibited from receiving or making
personal calls in the telesales area and had to use the
lounge during coffee breaks. There was a separate room
and telephone which could be used for personal calls.
2. Marin was not furnished with a copy of the pinkcolored
documents containing the standards of contract, nor was the
latter briefed on Cathays rules and regulations. However, upon
instruction of Foster and as mandated in the October 14, 1991
Memorandum of M.A. Canizares, she briefed Marin on the
standards and expectations of Cathay for probationary
employees, as well as its rules and regulations.
a. She informed Marin of the work expected of him: he had
to have 25 calls per hour from the public and should be

able to satisfy queries of the traveling public; aside from

regular attendance, he should likewise be open to
suggestions, constructive criticism, as well as being
given instructions by his supervisors; and gossiping and
chatting while on duty were strictly prohibited. Marin was
also enjoined to follow the rules and regulations issued
by Cathay to the staff of the Reservation Department.
b. According to Gozun, Marin was caught conversing noisily
with coemployee Aileen Lao during office hours. On June
26 1992, Marin was again found conversing noisily with a
coemployee during office hours, distracting other
employees and leaving several calls unattended. Marin
repeated his infractions twice in July 1992 in the
telesales area.
3. Montallana and Leviste advised Marin of the results of the staff
assessment dated July 6 1992.
4. In August 1992, Marin was found taking his coffee break at the
telesales area which was used exclusively for receiving and
entertaining calls from the public. He was again found chatting
noisily with his co employees, in fine disrupting their work; and
even received personal calls from the telesales area on
September 18, 1992, thus, blocking customers calls.
5. In view of his infractions and the recommendation in the
assessments, Cathay decided not to extend regular employment
to Marin. Leviste suggested that Marin had the option to
voluntarily resign.
LA: dismissed the complaint because of his knowledge of the rules and
the unsatisfactory staff assessment submitted by the supervisors.
Marin appealed before the NLRC
CA: reversed the LA and NLRC because the two-notice requirement was
not complied with before terminating Marins employment and Marin
was not briefed on the company rules, and the standards to be
complied with in order to become a regular employee.

ISSUES & RATIO.

1. WON the CA erred in reversing the ruling of the Labor
Arbiter and NLRC YES
The court agrees with the LA and NLRCs rulings that Marins
employment was not terminated during the period of his
probationary employment and that he was not extended a regular
employment by petitioner on account of his unsatisfactory work
performance during the probationary period.
It is settled that a probationary employee enjoys only a temporary
employment status, not a permanent status. In general terms, he is
terminable anytime as long as such termination is made before the
expiration of the six-month probationary period. The employment of a
probationary employee may only be terminated either (1) for a just cause;
or (2) when the employee fails to qualify as a regular employee in
accordance with the reasonable standards made known to him by the

employer at the start of his employment. The power of the employer to

terminate an employee on probation is thus subject to the following
conditions: (1) it must be exercised in accordance with the specific
requirements of the contract; (2) the dissatisfaction on the part of the
employer must be real and in good faith, not prejudicial so as to violate the
contract or the law; and (3) there must be no unlawful discrimination in the
dismissal. The burden of proving just or valid cause for dismissing an
employee rests on the employer.
Cathay's decision not to extend any regular or permanent employment
to respondent was based on findings that his work performance during the
six-month probationary period was unsatisfactory, based on the staff
assessment reports of Gozun and Montallana dated July 6, 1992 and
September 30, 1992, respectively. According to the July 1992 assessment
of Gozun and Montallana, while Marin had a good relationship with the staff
and was able to accomplish his work, he had been seen chatting noisily
with them during office hours, thus disrupting the operations of the
reservation department. Worse, he always left his work area and chatted
leaving calls from the public unanswered.
Leviste called the attention of respondent on the said reports and
urged him to avoid the same infractions and to improve on his work
performance. Despite these reminders, respondent remained adamant and
still entertained personal calls not only in his own workstation but in
others as well, and also passed on to colleagues the calls he received on
his own. Marin could not be relied upon to carry out the obligation of his
position as he took a lot of personal calls from one cubicle to another.
Respondent cannot feign ignorance of these rules. On April 13, 1992, after
the comptrollers strike at the airport was settled, respondent was briefed
by Montallana on petitioners rules and regulations, as well as those
regarding the work expected of him as a reservation officer, stressing the
need for him to totally commit and be enthusiastic about his work .
Indeed, when he testified, respondent declared that the said rules were
relayed to him, and that he found out about them on his own initiative.
Admittedly, neither Gozun, Montallana and Leviste issued a Memorandum
to respondent relative to his infractions or misdeeds; respondent was
merely verbally apprised of the staff assessments in compliance with an
administrative directive that written memoranda may be dispensed with
for administrative convenience but the employees attention should be
called at all times and discussed with the employee concerned. Further,
he failed to prove that his previous supervisors had any ill motive to
falsely ascribe to him the infractions/misdeeds. In fact, Leviste even went
out of her way to suggest to respondent to resign voluntarily, or else face
the adverse consequences of not being extended regular employment on
account of unsatisfactory work performance.
While it is true that respondent was not furnished with the pinkcolored set
of regulations of petitioner Cathay and with copies of the staff assessment
reports, nevertheless, respondent was briefed by Montallana on their

contents. When Leviste inquired from respondent if he understood the

rules and regulations, and if job specifications were clear to him, the latter
responded in the affirmative. Respondent admitted having received from
petitioner Cathay copies of documents to be used to evaluate his
performance. Petitioner thus complied with the statutory requirement.
In the light of his intransigent refusal to mend his ways and follow company
rules and regulations, respondent cannot expect his employment to be
regularized simply because he was not furnished with a copy of the
document containing the standards promulgated by it. In Aberdeen Court,
Inc v. Agustin, Jr., the Court held that The above rule, however, should not
be used to exculpate a probationary employee who acts in a manner
contrary to basic knowledge and common sense, in regard to which there
is no need to spell out a policy or standard to be met

expiration of the period provided for in the probationary contract of

employment. (Manlimos v. NLRC) Thus, a probationary employee remains
secure in his or her employment during the time that the employment
contract remains in effect, but the moment the probationary employment
period expires, the employee can no longer invoke the constitutional
protection. Thereafter, the parties are free to renew the contract or not; or
for the employer to extend to such employee a regular or permanent
employment. If the employee is not given a permanent or regular
employment contract on account of his unsatisfactory work performance, it
cannot be said that he was illegally dismissed. In such case, the contract
merely expired.
(taken from ESCRAs notes)

The evidence on record shows that Leviste briefed respondent on the staff
assessments and petitioners decision not to regularize his employment
upon the expiry of the probationary period, including the basis of said
decision. Respondent was even allowed to confer with and appeal to Foster
for him to be extended regular employment, but Foster found no merit in
his plea.

The rules on probationary employment should not be used to exculpate a

probationary employee who acts in a manner contrary to basic knowledge
and common sense, in regard to which there is no need to spell out a
policy or standard to be met. (Aberdeen Court, Inc. vs. Agustin, Jr., 456
SCRA 32 [2005])

DECISION.
Petition granted. CA decision reversed. LA and NLRC decision affirmed.

Even probationary employees could only be terminated for a pertinent and

just cause, such as when he fails to qualify as a regular employee in
accordance with reasonable standards of employment made known to him
by his employer at the time of his engagement. (Athenna International
Manpower Services, Inc. vs. Villanos, 456 SCRA 313 [2005])

NOTES.
Doctrines cited by the court:
the probationary employment of an employee may be terminated when he
fails to qualify as regular employee in accordance with reasonable
standards made known to him by his employer at the time of employment
and after due process (Secon Philippines v. NLRC)
constitutional protection on the probationary employee ends upon the

Where an employee hired on probationary basis was not informed of the

standards that would qualify her as a regular employee, she was deemed
to have been hired from day one as a regular employee. (Clarion Printing
House, Inc. vs. National Labor Relations Commission, 461 SCRA 272
[2005])